The Chancellor’s Budget speech made me giggle, I’d give him 8 out of 10 for the delivery. For the Automotive Sector however, maybe only 3 out of 10 for the content?
The news included a reduction in the grant for ZEVs, from £3,500 to £3,000. Even at that rate, the funds allocated will cover fewer than 45,000 cars a year for the next three years. Of course, if battery supplies don’t improve, this may be plenty….
ZEVs that cost over 50k won’t attract a grant at all. This will include most Teslas and all current offerings from Audi, Jaguar and Mercedes.
The “expensive car supplement” on VED will not apply to ZEVs (the Chancellor gives with one hand and takes with the other).
The Scale Charge (including the 2% rate for ZEVs) from 2022/23 will remain static until 2024/25. And that noise was the escalator finally stopping…. But with a 2.0 ICE car now so close to 37%, maybe that’s a moot point?
100% FYA from April 2021 will only be available for ZEVs, cars between 1 and 50g/km of CO2 will get WDA at 18% and everything else at 6%. Leasing disallowance will apply form 51g/km. This clobbers business tax relief for most cars.
The Chancellor said he’ll “get it done.” For the UK Automotive Sector maybe he meant “done and dusted”?